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NTBC vs Tai Yuan

The Commission of Conciliation, Mediation and Arbitration has ordered a KZN-based textile company to pay a R17 million fine for non-compliance with the provisions of the National Textile Bargaining Council's wage provisions. This is one of, if not the highest fine imposed on a non-compliant employer.

The order was made in an arbitration award issued by CCMA Commissioner Mr Jabulani Ngwane, following an arbitration hearing held on 10 June 2008, at the Durban offices of the CCMA. The arbitration award was released on 15 July 2008.

In the arbitration award, Commissioner Ngwane finds the company (Tai Yuen Textiles (Pty) Ltd) guilty of a wage underpayment of 393 employees from 12 February 2007 to 27 April 2008, amounting to R11.5 million. In addition, the Commissioner finds that the company has unlawfully failed to pay provident fund contributions and order it to pay back almost a R1 million in unpaid employer provident fund contributions. The company was also ordered to pay the workers just over R1 million in unpaid annual bonuses, to pay arrear bargaining council levies of R49 000, the union's HIV/Aids levy of just over R2 000.

The company was ordered to pay more than R5 million in interest for all the under- and non-payments (R2.9 million interest at 25% as defined in the Act for the wage underpayments and R2.3 million at 15% for the non-payment of the provident fund and other payments).